Programmatic: Effective 21st Century Advertising

How to catch proper users to your site? Try Programmatic, it might get you further than you think.

Programmatic - purchases targeted ads through an automated system and real-time bidding.

RTB is one of the most popular tools of Programmatic that is constantly used in modern advertising policies -  while the page the user clicked is loading, the ads are being adjusted to their search interests and preferences. This way the market targets the right audience and everybody stays happy.

Advertisers manage to efficiently operate and control pricing while RTB can successfully sell traffic. Well done!

There are two important kinds of advertising - prospecting and retargeting.

Prospecting

The idea behind prospecting advertising is obtaining new leads and attracting a broader audience to the product or service.

Imagine, you have got to find a provider of some service, it can be anything - from delivery to gym subscription. So, you type the inquiry in and the marketers, working in real time, immediately see you appear on their radar. If they don’t - they are bad marketers and have just lost a potential client. Anyway, this is exactly what prospecting ads do.

Retargeting

This strategy applies only to those clients who are already familiar with your brand, company or website.

Because of such ad targeting the clients are encouraged to come back. So if you ever browse a website, marketers add your data to a certain targeted group and it will be kept there for days or even months.

Who and what makes it work? RTB participants

• SSP (Sell Side Platform) - automated traffic bidding platform, where the most expensive offer gets the deal;
• DSP (Demand Side Platform) - a place where advertisers and agencies purchase impressions on different advertising markets. The interests of DSP is advertiser’s. The aim is to buy banner views by the lowest price and gather the view statistics.
• Trading Desk -centralised ad purchasing platform and a DSP manager;
• Ad Network - a mediator between advertisers and publisher;
• Ad Server - technological service and operating system for the website owners and advertisers to manage ad posting and optimisation;
• DMP - data management for efficient targeting;
• Data Supplier and Broker - service that sales anonymous DMP;
• Ad Exchange - advertising market;
• Ad Verification and Safety - ad post-checkup system, that detects fault or rule violation.

How does RTB advertising work?

RTB market is a total of technological platforms and services that interact with each other, bid and search for the most appropriate advertising offer in the real time environment. These programmatic buying systems are fully in charge of automatisation and optimisation of digital ads. It finds a perfect solution, based on specific criterias. It works so well, you might as well give it a chance.

The sequence leading to the ad visualisation

Bear in mind that all of this happens in a matter of 100 - 250 milliseconds!

1. The user enters in an address bar a website that operates with real-time bidding;
2. While the page is loading, the website sends RTB net an advertising inquiry and data available for client targeting;
3. Sell Side Platform analyses the inquiry: identifies the source, user data, time of access, etc. If necessary, it also purchases additional data from the Data Management Platform;
4. According to the data, the selling platform issues the bid to the Demand Side Platform;
5. Demand platform offers the price and sends it back;
6. SSP processes data from all advertisers and chooses the highest one, and shows the bid;
7. Trading Desk, ad purchasing platform, receives bid data, identifies the winner and transfers it to the user browser;
8. The page loads with the ad already there.

A win-win deal

RTB is good because it evens out the rights of market participants: advert seller, platform holders, advertising consumers and the marketplace itself. It increases the effectiveness of the work and caters to the client’s interests as well.

Andrew Volgin

Business Development Manager

With a sharp eye for market trends and strong relationship-building skills, Andrew leads initiatives that drive Magora to the forefront of tech innovation and success.